The June 2024 resale market barely budged compared to last year and continued to underperform compared to the past 10 years, according to a report from the Ottawa Real Estate Board (OREB).
Realtors sold 1,439 units through the board’s Multiple Listing Service (MLS) system, just two homes more than they sold in June 2023. Last month’s sales were 7.5 per cent below the five-year average and more than 13 per cent below the 10-year average for the month of June.
The weak showing occurred despite a long-awaited cut in interest rates by the Bank of Canada on June 5. The central bank reduced its key interest rate, which had been increased several times to fight inflation, from five to 4.75 per cent. It was the first cut since March 2020, and the five major banks responded by cutting their prime rates from 7.2 to 6.95 per cent.
Despite being a flat market, June was an improvement on May, when transactions dropped 9.2 per cent from the same month last year. May was the first time in six months sales had declined.
Year-to-date, sales are up 4.2 per cent compared to 2023. That growth comes after a two-year market downturn that began in early 2022.
OREB’s president, Curtis Fillier, is taking a positive approach to the June 2024 resale market numbers. “Ottawa continues to see steady activity as we head into the summer market,” he said in a statement. “Unlike recent years, buyers have more room to wait, evaluate and be selective when searching for the right property at the right price, leading to a slight uptick in the days on market.”
MORE: May 2024 resale market down
Resale prices slip
Prices fell for all resale housing types last month, according to the board.
OREB’s composite benchmark prices in June were:
- Single-family homes: $734,300, down 0.2 per cent from last June
- Townhomes: $501,500, down 1.6 per cent
- Condos: $420,800, down 1.7 per cent
On a year-to-date basis, both average and median prices are up 1.6 per cent compared to the first six months of last year.
The number of both new and active listings was up last month, as was the number of days on market. The increases mean greater selection for buyers.
“It’s going to be an interesting summer and next half of the year,” said Fillier. “As confidence builds, there will be ample opportunities for both (buyers and sellers).”
